ISDA assesses Greek bond deal

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The International Swaps and Derivatives Association (ISDA) announced yesterday it was too early to say whether the terms of last week's bailout of Greece would mean the country was formally in default. ISDA, which oversees the multi-trillion pound credit derivatives market, said a review of whether credit default swaps (CDS) on Greek sovereign debt should pay out would take place only once the final terms of what the European Union termed a "voluntary exchange offer" were publicly released or if a market participant made a formal request for a review. The association said the Eurozone proposal appear to involve “a voluntary exchange that would not be binding on all holders”.